A Letter of Credit (L/C) is an instrument issued by a bank for an individual or corporation that transfers the financial responsibility for payment of goods from the customer to the bank. This facilitates trade and mitigates risk for exporters, importers, and among any unfamiliar business partners.
As one of the leading trade banks in the world, Wachovia is the fourth largest processor of commercial letters of credit in the United States, and the first bank to enable our customers to initiate letter of credit transactions over the Internet.
We offer a complete set of import/export services:
Import/Domestic letters of credit—For importers, Wachovia guarantees payment to your domestic or overseas suppliers with L/Cs obtained from your relationship manager or online through Cyberbank LC.
Export letters of credit—For exporters, Wachovia uses its own credit standing to ensure payment from overseas customers, giving you access to our extensive Correspondent Bank Network, and CyberXport, which allows you to receive, review, and track export letters of credit online.
Standby letters of credit—Your company can guarantee its ability to perform under a contract, pay a supplier, or support worker’s compensation or industrial revenue bonds using Wachovia’s standby letters of credit.
Documentary collections—Wachovia can act as an intermediary for exchange of funds and documents as a less costly alternative to letters of credit.
Banker’s Acceptance financing—A potentially less costly method for supporting short-term (six months or less) trade transactions, a Banker’s Acceptance is a time draft drawn on and accepted by Wachovia. By accepting the draft, Wachovia indicates its commitment to pay the stated amount of the draft on a specified future date.
For more information, contact your Wachovia Relationship Manager.